7 Biggest Mistakes in Setting Prices

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Source: Entrepreneur.com

1. Going in too low and undercutting all the time

For some businesses, this isn't a mistake, it's an entire strategy, and it's not a very good one. Going in too low all the time might be great for your top-line revenue number, but it wreaks havoc on your bottom-line profit number--the one you will need to survive. You need to profit and price accordingly. You might not get business out of all of your price-conscious customers, but that's OK. Your competition will--and then they will have to figure out how to profit from the "price shoppers" when there is little or no profit to make.

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